going to be adding to that today. 200-day moving average, 1,380 in the s&p. "power lunch" begins right now. >> wall street ushers in another four years of president obama with a massive sell-off. dow down 295 at 12,951. nasdaq off 2.5% at 2,937. the s&p lower by 31 points, better than 2% there. gold and oil also moving lower. this is not helping things either. violence breaking out in athens once again. firebombs being hurled against police. greek parliament voting on new austerity measures. sue is live in the middle of the market mess downtown at the new york stock exchange. sue? indeed i am. it was interesting what you did with gold there, ty.

we had a huge gain in the gold market yesterday. lot of people were expecting more of a pullback. we're not getting that. just a little bit. on a day like this we're going to start with bob pisani here on the floor of the new york stock exchange. you know, we have the president re-elected but we still have the impasse in congress that he's going to have to deal with after this election. and that seems to be looming very large over this market. >> let me handicap this for you. 300 points down on the dow. hundred, hundred, hundred. first put up the s&p here in the middle of the day. mario draghi made comments at 7:15. germany weak, we fell apart on that. that close is the european close. there is our bottom for the day. there was heavy selling going into the european close. right at that point we bounced off of it. 100 points the decline today due to mario draghi. another 100 points due to the general concern about specific sectors that would be weak upon president obama winning. coal stocks weak. financial stocks weak. defense stocks weak. dividend payers are weak as

well. downside of the obama play. that's 100 points. now we're up to 200. the third hundred i give, apple. apple dropped below 20% around $1,550 or so. the rest of the market moved to the downside. >> thank you for that simple explanation. that's why we go to you. ty, back to you. brian sullivan has breaking news on a major shakeup at boeing. brian? >> layoffs are coming at boeing, tyler. although we don't know how many. here are the headlines. boeing in a memo obtained by reuters telling employees they will be looked to cut costs by $1.6 billion between next year and 2015. they will reduce the number of divisions from 13 to 10 and that will also reduce the number of jobs, as well as managerial jobs. perhaps by as much as 10%. again, all this coming from a memo that was sent to employees that was obtained by reuters. boeing saying it does see some layoffs, though it can't pinpoint the exact number.

boeing in the memo saying this is all part of a continued affordability drive because you guys know as well as i do, tyler, that with this news today, the threat of possible sequestration, the fiscal cliff is going to be some theories out there about why the announcement is coming out. boeing making it known this is part of a plan where they've already cut $2.2 billion in costs from 2010. still, not good news for boeing employees. that stock is down just over 2% right now, or $1.58. back to you. >> brian sullivan, thank you. seema mody? >> tech stocks following the broader market retreat. of course apple dominating the tech headlines. let's take a step back and assess what's going on here. you got the fundamental and technical story at play. on the fundamental side, there have been some near term concerns on the street regarding supply constraints. apple's ability to effectively be successful in the lower priced tablet market. but it is really the technical analysis that's weighing on the stock. the street of course worried the

fact that the stock officially entered bearish territory. the stock broke its 200-day moving average last week. it is now sitting at a five to six-month low. we continue to watch that stock very closely. back to you. >> seema, thank you. not just stocks that are under fire this day. many commodities really taking it on the nose today as well. sharon epperson live at nymex. sharon? >> no commodity more than oil, tyler. looking at wti oil futures are down about 4% below $85 a barrel. approaching the lowest levels that we've seen since july. we're looking at a sell-off across the board on the energy complex. gasoline futures at session lows right now. we are looking at prices that are anticipated to fall at the pump at least nationally despite the problems we continue to have here on the east coast. we could see prices below where they were a year ago for the national average by thanksgiving according to opus. gold holding up relatively well but still lower and the only

bright side in the commodities market, wheat and corn due to production issues in argentina and australia. back to you. >> thank you, sharon epperson. joining me know, kenny polkari. yesterday i asked you whether you would buy into the rally. you said absolutely not. nice call. we're down 283 points. what's the most important aspect to the market sell-off today? >> i think it is just the realization now that the election is over. there's no more talk about it. it is done. the focus once it goes on the broader macro issues. greece and the issues here in this country and weather's going to get through it. 54 days until we get to the fiscal cliff. sflit so people are really concerned. we're going to have those 100 ceos that form that organization marching down to washington. probab >> what's more important to this market? europe or the fiscal cliff? >> i actually think -- i think it would be the fiscal cliff but i have to tell you, if europe starts to implode and look what

they're doing in greece today, if that movement starts to move to spain and the other countries that's going to steal the headlines. >> i think those pictures as well. even if we don't get headlines out of greece. when you see those kinds of pictures, it brings it all back home. >> it brings it all back home. then people are concerned that it gets out of control. then it starts to go to spain. starts to go to the other countries. then does it in fact come to our shores? if we go over the fiscal cliff. >> i'll see you a little later in the show. phil lebeau joins us now. he's got more on the late breaking news on boeing for us. what do you got, phil? >> sue, boeing is just announcing that it is doing what essentially is -- what they're saying is not a major restructuring but is nonetheless a further restriction and movement and consolidation of mid level executive position within the defense and space division. there are a number of executives moving around within that division. jobs that are being consolidated. they've cut off $2.2 billion out

of their defense division over the last couple of years as they're trying to squeeze costs down because of the tightening defense budget. this is another step in which they're going to be doing that, moving around a number of executives. they just announced it. it does not look like we are looking at the reduction of the lower-down labor force. in other words, you're not looking at the blue collar entry level jobs within the defense division being squeezed out. but boeing is saying we need to continue consolidating within the mid level executive rank of our defense division as we continue to streamline that division. >> phil lebeau,ky ask phil a question? phil, is this do you sense in any way an immediate response to the impending sequestration of hundreds of millions of dollars, maybe billions of dollars, in defense cuts? or just a tightening of defense budgets going forward? is that what this is all about. >> i think it's more because of

an overall tightening of defense budgets and i think whenever you had a chance to talk with jim mcnm mcinerney. they've been squeezing their defense business in terms of cutting costs over the last couple of years saying that they have to become leaner and more efficient. this is the next step there. in my opinion -- i need to double check with boeing -- i do not believe it is an immediate reaction to possible cuts because of sequestration. >> thank you, phil lebeau. another big market voice on the program today, jonathan gall of chief u.s. equity strategists at u.p.s. what's t -- ubs? >> all day long we've been asking when is the market going to care about this fiscal cliff? the answer is right now. i think what's more important than even looking at the stock market down 2%, it is a look at what happens in the bond market today where yields are falling. the market is telling you that you have a big growth problem because of this cliff ahead of us. >> jonathan, we're going to come

back with you in the second half of the hour and talk a little bit more about the fiscal cliff and other things. now there is europe. the president of the ecb making some comments today that put markets on edge across the world. check out the european exchanges. we've got down, down, and down. if we can check them out, we would. wouldn't we? yes, we would. there is one of the reasons why. the new austerity measures being voted upon in greece. i guess most of that is taking place, michelle caruso-cabrera, our chief international correspondent, after the close of the markets. but it is a rough day for equities and a rough day for evening in the streets of athens. >> these dramatic pictures are one of the reasons why we're seeing a sell-off in europe. there is a vote at midnight athens time so roughly 5:00 p.m. eastern time that we expect they're going to vote on more measures. once again the people are very angry about the cuts that we've seen there. you can see what's happened in europe. that's 1 of 3 things that happened today in europe to push san jose averages lower like we said.

other thing that was important, the european commission came out and said growth in europe in 2012 not going to be what we thought. in fact it is going to contract. >> 2012. >> 2012. they thought it was going to be flat. instead it is going to contract. the hope for recovery in 2013, kiss that baby good-bye. it is not going to happen. what do we know about europe? they need money to pay their bills. when their economy falls, they have less tax revenue, they have less money to pay their bills. that's why people get nervous. then mario draghi is the ben bernanke of europe comes out and says something today that falls in the uh, duh, category of news but certainly it scared people. germany has so far been largely insulated from some of the difficulties elsewhere in the your yo a euro area. another economy that could be slowing, less tax revenue, less money to pay bills and they need a lot more of it. the one thing about germany is, tyler, the southern half of europe, we're looking at it here, is in depression.

how is it that you think that the european economy can possibly grow when you have so many southern countries suffering like you see there with almost no tax revenue and germany was going to be insulated. >> eventually it was going to -- they're selling their products to those countries. >> a trifecta of troubles in europe today. before we dive more into the fiscal cliff, i want to update you on what's going on right around this neighborhood where i am here in lower manhattan and new york city. once again we're talking about storm surges. as a matter of fact, there are almost no restaurants open down here. when i was walking down to the exchange, it was starting to snow a little bit. the wind is picking up because another nor'easter ishitting the area right now. meteorologist todd gross is tracking this storm. >> this won't be as bad as last week but the snow is a big wild card as i've been telling you for the past couple of days. it is just pushing in right now. you can see it from boston down through new york city to philadelphia. mostly snow, just inland from

the coast and mostly rain right on the shorelines. several problem spots. first of all, just south of boston. not only very windy but a big storm surge coming in there later this afternoon. and again at high tide later tonight. also out on the eastern tip of cape cod, out towards nantucket, winds already to 55 miles an hour likely to gust to 60. so some damaging winds there. then there's that new york city vicinity area in terms of the snow. it's a big wild card because we're not sure it is going to change over to complete snow in flos flosh new york. if it sticks, it will bring down more tree limbs and cause more power outages. there will at least be scattered power outages all over again coming in to the northwest suburbs of new york and up into new england. that's the very least. we'll be watching this every step of the way throughout the course of the afternoon. >> we do not need this. thank you very much. appreciate it. courtsny reagan now with a

"market flash." >> related to what todd was just talking about, shares of exelon hitting a new 52-week low on the heels of this new nor'easter that's going to slam us right when we're down. we can see more power outages. the stock was lower. we're ticking higher but still hit a 52-week low down more than 1.5%. thank you, courtney. we're following the weather. we're following the market with the dow off o 264 points and that's off the lows. the election meanwhile is over. now the major event for business in washington is avoiding that fiscal cliff. we are going to try very hard to get a republican and a democrat on the same page in a bid to solve the problem before thousands of americans start losing their jobs. that is next. tdd#: 1-800-345-2550 let's talk about low-cost investing. tdd#: 1-800-345-2550 at schwab, we're committed to offering you

tdd#: 1-800-345-2550 low-cost investment options-- tdd#: 1-800-345-2550 like our exchange traded funds, or etfs tdd#: 1-800-345-2550 which now have the lowest tdd#: 1-800-345-2550 operating expenses tdd#: 1-800-345-2550 in their respective tdd#: 1-800-345-2550 lipper categories. tdd#: 1-800-345-2550 lower than spdr tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and even lower than vanguard. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that means with schwab, tdd#: 1-800-345-2550 your portfolio has tdd#: 1-800-345-2550 a better chance to grow. tdd#: 1-800-345-2550 and you can trade all our etfs online, tdd#: 1-800-345-2550 commission-free, from your schwab account. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 so let's talk about saving money, tdd#: 1-800-345-2550 with schwab etfs. tdd#: 1-800-345-2550 schwab etfs now have the lowest operating expenses tdd#: 1-800-345-2550 in their respective lipper categories. tdd#: 1-800-345-2550 call 1-800-4schwab tdd#: 1-800-345-2550 or visit schwab.com tdd#: 1-800-345-2550 to open an account today. tdd#: 1-800-345-2550 funding is easy tdd#: 1-800-345-2550 with schwab mobile deposit. tdd#: 1-800-345-2550 investors should consider tdd#: 1-800-345-2550 carefully information tdd#: 1-800-345-2550 contained in the prospectus, tdd#: 1-800-345-2550 including investment objectives, tdd#: 1-800-345-2550 risks, charges, and expenses. you can obtain tdd#: 1-800-345-2550 a prospectus by visiting tdd#: 1-800-345-2550 www.schwab.com/schwabetfs. tdd#: 1-800-345-2550 please read the prospectus tdd#: 1-800-345-2550 carefully before investing. tdd#: 1-800-345-2550

vote in 54 dazys now until e roll over the fiscal cliff. today we have two people we hope are dedicated to stopping it from happening and are ready to rise above. representative marsha blackburn, welcome back. republican from tennessee. john yarmouth, welcome back, a democrat from kentucky. delighted to have you both here. folks, i want to play a little bit of can this marriage be

saved. a little marital therapy here. not it ththat either of you nee marital therapy. i'd like to you speak directly to mr. yarmouth and tell him what you need him and his party to do to make progress toward avoiding the fiscal cliff. speak directly to him. >> absolutely. let's start with spending cuts. because what we know from everyone that has looked at this is the first thing that you have to do is get the out of control spending under control. that's got to be item number one. separate it. do across the board cuts for the discretionary spending. then deal with the trust funds, medicare and social security, and then the entitlements. the largest of which is me i tht's item number one. item number two would be getting

rid of some of the loopholes that exist in the tax code. cleaning it up. making it flatter, fairer, simpler. but let's look at those loopholes and clean that code up. >> congressman, speak to miss blackburn and tell her what you need her to do and her party to do. >> well first of all, i wore to orange sweater as a concession to marsha's tennessee vols. that's my effort at bipartisanship. no, we actually agree on some very fundamental things. we don't want the across the board cuts to go into effect on january 1st which would be devastating to the economy and we also don't want taxes to rise on 98% of the american people. the only thing i would say to marsha and her republican colleagues is just be willing to give us a little revenue from the people who have done very, very well over the last ten years or so and help us restore

some fiscal sanity with a balanced approach, to not just cutting programs that are very, very important to most working families in the country. i think it is pretty easy. >> mr. yarmouth, i want to ask you -- i'll come back to you to talk a little bit about medicaid and entitlement reform. miss blackburn, let me turn to you. you say we need to cut spending. practically everybody believes that. you said specifically discretionary spending. is defense -- is defense a discretionary expense that could be cut, in your view? >> this is one of those items that you say where does defense fit? during times of war you have to say is it discretionary or is it mandatory? now, if defense were treated like other discretionary and had been offered a 2% haircut, you would probably have people at dod saying we can deal with that. the problem is you've doubled up and tripled down on cuts for defense and that is something that is not workable.

we know that once those enlisted men and women are gone, they're not coming back. once those production lines are stopped for what we need for our troops and i have ft. campbell which primarily sits in tennessee, sits in my district, and i've had lengthy conversations with the men and women there, our enlisted men and women and our command team. that's a tough one. that's too go in and triple cut what they need to fight not only this war but the next war. >> so congressman, you've heard what your colleague has to say here. she spoke early about reducing spending on entitlements, specifically medicaid. i'd like to get your response to that and it seems to me that one of the things that the gop underneath it all seems to be asking for is a commitment on the part of the president and the democratic party to smaller government, smaller government, that we can't afford a

government the size we have today. how do you feel about that? is that an unreasonable idea? >> well, actually government right now is no larger than it was four years ago. the only department that's actually expanded has been the department of homeland security. everything else is actually decreased in size. what marsha's talking about, discretionary spending, we cut $10 trillion out of non-defense discretionary spending. now under the sequester those programs would experience another 9% cut. that's really a double whammy for things like veterans programs and nutritional programs. >> what about the idea of turning medicaid back to the states which so many on congressman blackburn's side advocate? >> you know, that's just a license for some states to eliminate a very, very important part of the social safety net. when you have a state like texas that had a medicaid threshold of 40% of the poverty level, which

means if you are a family of four and you made over like $12,000, you couldn't qualify for medicaid? i mean you have to have some kind of standard set at the federal government or else some states would just basically let people suffer and die. >> ty, i tell you -- >> quick final thought, congresswoman blackburn. >> yeah. a couple of things our governors say they would like the ability and think they can more effectively manage those programs and meet the needs that are there in their states. and when it comes to discretionary spending, there is so much waste, fraud and abuse in the discretionary portion. we need to focus on that and make government more efficient and more effective and save the taxpayer money. >> marsha plaquebublackburn. >> everybody agrees on that. >> okay, let's agree on what we can agree on. thank you very much to both of you. we'll be watching. thank you. well, ty, i think off of

that conversation that really dovetails with what the ratings agency fitch -- they may have said it best. the president will have no fiscal honeymoon on the challenges facing the country. the u.s. could be in for another downgrade. john harwood on the president's biggest challenge in this new term. >> hi, sue. you just heard from the politicians about their approach to the fiscal cliff and the challenge facing the country. let's look at what the voters had to say about it last night. because this is what president obama and congress are going to turn to immediately. first of all, if you segment the electorate by income, in 2008 the president carried people who earned over $200,000 a year narrowly over john mccain. he lost that group this time, also lost between between $200,000 and $250,000 and people over $250,000. but the affluent voters lost the argument on taxes with the american electorate overall. you ask people should taxes go

up? 60% of the american people say yes, taxes should go up. only 35% say no, they shouldn't. then when you segment that, you've got 13% of the american people saying they should go up on everyone. that's what would happen if we went over the fiscal cliff. but 47% say they should only go up on people making over $250,000 a year. that happens to be president obama's position. he carried, dominated the electorate in both of those groups among the 60% who want taxed to go up. president obama enters these discussions with people like marsha plaqueburn on the republican side with a stronger hand than he had before. we'll see if the republicans are willing to give ground and compromise with him. >> indeed we will. john, thank you very much. the stock market's off 274 points on the dow jones industrial average. bonds were backing mr. romney -- or mr. obama. stocks were backing mr. romney. the bond traders obviously won. and we just had a key 10-year auction just minutes ago with yields dropping on the 10-year.

we're going to head to the chicago pits for reaction. as we head out, a look at some of the most widely held and how they're trading in the sell-off. we have a significant percentage decline in microsoft which is off 2.25%. at&t which is off 2.33%. back in a moment.

well, the bond market

obviously has been the harbinger today of where a lot of the cash is going to go and the 30-year bond we've seen a yield of 2.81%. the 10-year yield dropping to 1.625%. the 10-year is significant because we had a 10-year note auction just a few minutes ago. $24 billion. jim yurio track being the action at the cme. was that in line with what you were expecting, jim? >> it was. we would expect there to be a thirst for bonds today and there was. they can't get enough of them. a little historical fit bid. on the mon 10-year yields tend to drop 40 basis points in the first month after a democrat is elected. i'm not a huge fan of that statistics because obviously the economic condition changes in political parties' principles change as well. we saw trades in the 30-year that suggest a 2.5% yield.

30-year options for that. it's definitely a rush to buy bonds right now. >> all right. that was my question. do you want to put fresh money into this particular trade right now? i mean you could argue that it might be a good place to put it given what's going on in europe, given the fact we're off 274 points in the dow and that's off the low. >> the thing that worried me the most today is when i saw harry reid make the comment about how important climate change legislation was -- to me that's definitely a signal to the republicans, we have no intention of stepping to the middle on this fiscal cliff issue today. hopefully they're just bluffing and in the end they will. to me that was definitely a significant worry. i have no problem buying along it. but i don't think the stocks are doomed either. remember, before we have these huge selloffs in stocks, usually people are bulled up. we're not seeing that right now. >> that's a really good point. thanks a million. the gold market was holding up relatively better than the rest of the complex.

sharon epperson is track being the action at the nymex. >> gold prices are closing basically flat on the session. we saw gold top $1,730 an ounce earlier in the day, that on a lot of concerns about what is going on in europe. but we gave up a lot of those gains and now basically flat on the day and actually basically closing right where we were on friday's close. not a lot of changes here in the gold market. as some traders are saying, part of today's sell-off in the gold market or the giving up of the gains was due to margin pressure in other asset classes. other traders say, nothing much has changed in terms what have we're seeing and what we've been saying about status quo in congress and the fiscal cliff. that's why gold prices are basically where they were. other metals much harder hit. growth story there. back to you. >> thank you very much, sharon. to the nasdaq now. we know apple's been pressuring the nasdaq but there are other movers there as well. seema mody has them for us. >> apple with its 20% wage on the nasdaq 100, it continues to

pull the index lower officially in bear market territory. also want to point your attention to chip stocks which are underperform being the broader tech space. intel hitting a 52-week low. qualcomm losing ground ahead of its earnings report tonight. the street calling for a fourth quarter eps of 82 cents. speaking of earnings, news corp. reported earnings yesterday, it beat street estimates by 6 cents so that's actually a bright spot here at the nasdaq. also netflix showing some green. cantor fitzgerald boosting its price target to $85 a share. back to you, tyler. stocks slammed a day after the elections and add on new fears about europe's debt crisis, the dow trading below 13,000. hasn't been that low in quite some time. we'll be back in two minutes to talk more about it.

plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. when we got married. i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball.

those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule.

welcome back to "power lunch." we're down 266 points on the dow jones industrial average. let's get the trading action here. bob pisani's on the nyse floor with me here. at least we bounced off the lows. we tested the lows, then bounced off. that's a little bit of encouragement. >> believe me, there was a lot of worry that we were drifting

just lower and lower. they had to find some kind of level in the morning because a lot of people had come in and were buying in the morning. there was no stability at all -- until we hit the close in europe. so here's my thoughts. 100, 125 points. dow would be 125 points higher if it wasn't for the draghi comments. he made those comments around 7:15 this morning and the futures just fell apart. we were basically flat on the s&p futures. the s&p futures intraday. that cost us a good ten points just before the open. then we kept dropping into the open and obviously this is concerns on obama's election. take a look at the major sectors here around him. coal stocks, financials, defense, energy, and dividend payers. that's the last one there, all to the downside. finally a few points when apple broke the 20% decline mark. >> i think that's quite significant. they're watching that down here certainly. bob, thank you. so we have a stock market sell-off. jonathan is back with us to give us a little strategy here because we still have a lot of

headwinds which you talk about earlier with tyler. we have europe which continues to grab the headlines as bob just mentioned. we have the fiscal cliff and we still have the jobless rate at unacceptedly high levels. what do you do with your snn. >> while the electorate, citizens care about jobs, the market really cares about economic growth and profits. i think that what the story to me that's most important today is how low yields have moved. that's the market telling you that we have a growth problem and that's not going to be good for profits. you need 1.5% gdp in order to get any growth in profits at all and the market is not that much ahead of that 1.5% gdp number. >> you don't view the movement of the bond market as a fear trade today or is it a little bit of that as well? >> it is a little bit of that. but if it was really a fear trade, you'd also see gold rising as well as money would move there as well. i look at those in combination, see is it growth or is it fear, today i think it is growth. >> stay with us, jonathan.

we'll talk more about that and the fiscal cliff. it is obviously back in focus. our next guest, senator pat toomey, republican from pennsylvania. jonathan, start us out. i think you have a question for the senator on the fiscal cliff issue. >> hello, senator. one of the -- >> hello. >> -- questions that i'm hearing from investors is a timing issue. there's so much to work through between now and year end. how much are we going to be able to address now and how much are we going to have to push off into next year and what might the process be to resolve some of those from kind of a timing perspective? >> well, it certainly would be very constructive if we could get some of these things solved now rather than deal next year. for instance, some of my colleagues in the senate think we should go over the cliff and then maybe go back and lower some tax rates back down to where they were prior to the cliff. i for one think that's a terrible idea. i think we ought to extend the

current tax rates in their entirety and work through some pro-growth tax reform. we've tried to suggest this. at any time get too much progress on the other side. i'm just hoping now that the election's over and people can focus at least for some time on policy instead of politics, that we could get some things done. >> senator,ky ask you a quick question about -- there's a business group that's hitting the news wires right now. it's the manufacturers association and a group of ceos. they're saying we can't afford to bump up against the fiscal cliff and that basically you should just tackle what you need to tackle right now and save the compromise on taxes and entitlements to 2013. doable or not? >> well, i think the spending -- the very modest scale of the spending cuts that are in the sequester have to go ahead. i'd prefer they be recon figured because i think they land too heavily on our defense budget.

but a $100 billion out of a $3 trillion budget is a small cut. it could do some national security harm. i think we recon figufigure the. high-dividend stocks are getting hit today. as well they should. the president's plan is to triple the tax rate on these things. that's a disaster. it's terrible for our economy. it's terrible for growth. by all means, i'd like to solve that problem now if we can and we really should avoid this huge tax increase that's looming. >> senator toomey, tyler mathisen here. i want to ask you about natural gas. fracking in your state, and coal. before i get to those two, if the president were to acknowledge that we can't afford a government as expensive as the one we have today, and he were to acknowledge and work seriously towards the kind of tax reform broadening the base, getting rid of some loopholes, that you advocate, could you

acknowledge that the government needs more revenue if that revenue strictly went to reduce the debt? >> i would put it a little differently and refer back to the proposal that i personally put on the table when i was a member of the super committee. the optimal way to solve our fiscal problem is not raising taxes on anybody. the problem is a spending problem. that's -- to fix that, that's the optimal way. but if the other side refuses to do that unless they get some tax increase, then the only way that i think it could make any sense to do that is to do it in the context of pro-growth tax reform. in other words, you don't raise rates on anybody. you lower marginal rates but then offset the lost revenue by reducing the value of deductions and writeoffs and loopholes. if you have to, in order to get the improvement -- reforms ain spending that we need, you might need to generate a little more revenue from those reduction and

deductions to more than offset the reduction in marginal rates but only if we're actually solving the problem and that's too expansive a welfare state. >> that sounds like maybe the kernel of some progress there. let me turn you now to natural gas fracking which is very important in the north and northeast, and coal which is very important in the pittsburgh and southwest of the state. what is the future of those two areas under a second obama administration? >> well, it's a big concern. the president's not particularly fond of fossil fuels, as we know, and particularly coal. there's been a very aggressive effort to really dramatically diminish our ability to use coal and that's enormously problematic for all of america, but in particular for coal producing states like penn. we've had to close six pennsylvania power plants just because of new -- a whole new generation of epa regulations. that's going to raise the cost of energy for us. and that's problematic. now in the meantime of course, there's been a huge boom in

natural gas that's dramatically lowered the price and that has largely offset some of the damage that's been done on the coal side so far. but we really ought to be using both of these and we ought to be drilling for more oil. we really could be energy independent given the gas that we found and the oil that's coming from new reserves that we can reach through fracking, we can be energy independent but we've got to be willing to use the fossil fuels we have. >> senator toomey, thank you very much. sue, back to you. thanks, ty. jonathan, as we've talked to a number of politicians throughout the day and it does seem as though they're going to take us right up to the brink. what does the market do if indeed that happens. >> if we use as a baseline what the market did last year, the market was off by 17% in -- in the period around the debt debate in the summer of '11. it is not that that's the number we're going to fall, but when people say give me another example of what this feels like and you point to that, it is

going to scare investors. i think there is going to be a lot of investor angst around this. >> money is going into treasuries right now. would you go into treasuries ahead of this or into high-yield corporates? something like that? >> i'll tell you what i prefer -- again, i'm a stock guy -- i think you want to find companies that are able to grow in a slow growth environment and those that when they get that earnings, give it back to shareholders in dividends. those names have really outperformed the market more than anything else. >> jonathan golub, thank you very much. courtney reagan with "market flash" now. >> hi, sue. let's look at shares of macy's. we are lower right now for these shares but largely y lly yut plg the rlx. hurricane sandy hit the last two days of the fiscal third quarter and macy's thinks that it could hurt the fourth quarter and that includes the holiday sales. as a result, their estimates are below the street's expectations for the fourth quarter. sue? >> courtney, thank you.

the dow tanking triple digits. it fell below the 13,000 mark. right now the dow is off just about 259 points. one-third of its losses coming from just five companies -- ibm, exxon, chevron, cat and united technologies. coming up next -- more on that breaking news for boeing as well which on the day is down about 2%. reorganizing on the defense side. we're back in a moment. [ male announcer ] this is joe woods' first day of work.

and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. shares of gm now down better than 3%. that's because they are going to be taking a pretax charnel. they are doing that to settle some of their pension obligations. their total group annuity premium which is going to be paid to prudential will result in that pretax charge. the markets taking another dip to the downside on general motors. it is down about 3.25%.

we'll continue to follow that story for you. now let's see what's coming up on "street signs." >> thanks very much for that, sue. wall street may be selling off today but keep in mind, obama's presidency has been amazing for stocks with gains of over 60%. we've got some big ideas for maybe even buying this sell-off. also, four more years of obama creating a split in health care stocks. find out which ones are up, which ones are down. whether or not these trends will continue. we've also been talking about this all day. apple getting slammed. now in bear territory. is this just one more reason to buy? with apple on the 20% clearance rack? we'll talk about that and many other things, guys. 2:00 p.m. show. back to you on "power lunch." joining us on the phone now, barclays aerospace and defense analyst carter copeland on the reorganization that we led the news with this hour at boeing. carter, you've had a buy rating on boeing for two years now. was the timing of the boeing

announcement the day after the election reactionary or has this all been in the works for a while? >> look, i think it is safe to say that boeing is engaged in a cost reduction efforts that are similar to those we've seen around the whole industry. but look at some of their large cap defense peers, companies like lockheed martin, we've seen head count reductions, we've seen facilities reductions as these companies try to get ahead of a declining defense budget and tougher times ahead that we've seen for a couple of years now. the fiscal situation's not a particular surprise to these companies. i think these are decisions that take time and plans that take considerable time to get into place. so i would say it is more coincidental that you get an announcement like that today. but it certainly is going to get more attention following the results of last night's election. >> you say that although obama's victory was less bullish for short term stock prices, the election sun likely to have a

significant impact on the long term outlook for the defense budget. why do you say that? >> well, look. there's really two things kind of pushing on the defense budget over the next let's call it five to seven years. the first of is that is the fiscal situation which argues for pressure on defense funding as the largest discretionary account in the federal budget. the other is the sort of global security environment where the world is still a pretty threatening place. peace isn't breaking out everywhere and that argues for the opposite and sort of sustained high levels of funding amidst that sort of backdrop. so i would say those two forces will continue to push on the defense budget in both directions, and ultimately this will be -- there will be a lot of congressional decisions that go into this. it's still early days but i think just the results of last night's election do little to

change that. >> we have to leave it there. carter copeland of barclays, thank you. washington and wall street a sea of red in the markets a day after the elections. if all ten s&p sectors close down more than 1%, it would be the first time since early december of 2011 that that would happen. where do we go from here? we'll talk about that. as we head out, stocks are diving today but we are off of our lows of the trading session. there are some gainers on the nyse. startek up 20%. hyperdp dynamics up 19%. tenet health care up better than 10.25%. vanguard health up just under 9%. back in a moment. but when i was in an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life. so i never missed a beat. that's health in numbers. unitedhealthcare.

let's go to caruso-cabrera with a fire in angry athens, greece. >> firefighters are putting out a large fire in the square right in front of parliament. there is a lot of small structures in the square. looks like that might have been it or some kind of commercial business there. firefighters have been diligently working to put out what was a large fire.

as we wait still for parliament to vote on whether or not they're going to pass these new tough round of austerity measures in order to get another round of bailout money from their european partners and once again another round of violence in the streets. we've seen this movie before, tyler. but they keep going at this trying to resolve the problems over there. back to you. >> thank you. down to sue now. >> ty, we're down 261 points. stocks taking a nosedive the day after the election with wall street and washington wondering exactly where we go from here. the count dodown to the fiscal cliff inching closer. ben white and kenny polkari are here. ben, from what we've heard on our air this morning, there is still a huge divide in congress about how to tackle this fiscal cliff. how close are they going to take us this time around? and do you think they're aware of the consequences of it not only to the country but also to the stock market? >> they're absolutely aware of the consequences.

if they weren't, today's market certainly makes them aware. i think we'll get fairy close. don't think we'll go over it. i think people are misunderstanding the balance of power in washington now after this election. president obama won the popular vote. he won probably 332 electoral votes and he ran on a very clear message of let the top tax rates expire, we'll deal with the rest of it and take the spending cuts off the table. i think house republicans eventually are going to have to come and meet him some of the way. they lost tea party members in the house and lost tea party members in the senate. there are a lot of ceos that my questions is come out in the next couple of weeks and stand behind the president, saying we can't allow this fiscal cliff to happen. president saying let's let the top rates expire and move forward with that plan. i think he has a whip hand more than the house gop does. >> what's going to be the impact, kenny? we had these ceos down here with us on the floor of the new york stock exchange. it is a powerful group of people. >> it absolutely is but i think we're getting that reaction today. i think ben is right that the

market is soelg selling off. it is repricing the risk based on what the new reality looks like but i think one these ceos get together they'll march down to washington. they're not going to let a lot of time expire before they get down there. i think it does reassure the market. i think it is going to reassure the market that these ceos are standing with the president if in fact they do like ben says and that they support it, because ultimately it is going to be for the good of the country. maybe a little painful going along but in the end if you can look through it, it is going to be for the good of the country. >> maybe it gives congress a little political cover, too. thanks, kenny. ben, thank you so much. we've been falling through all kinds of psychological an technical levels on the market today. next, we're going to pull out the telestrater, see where the charts tell us we're going from here. that's coming up in "street signs" in the next hour. right now the dow jones industrial average is off 263 points and we're back in a moment. tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong.

tdd#: 1-800-345-2550 after that, it's on to germany. tdd#: 1-800-345-2550 then tonight, i'm trading 9500 miles away in japan. tdd#: 1-800-345-2550 with the new global account from schwab, tdd#: 1-800-345-2550 i hunt down opportunities around the world tdd#: 1-800-345-2550 as if i'm right there. tdd#: 1-800-345-2550 and i'm in total control because i can trade tdd#: 1-800-345-2550 directly online in 12 markets in their local currencies. tdd#: 1-800-345-2550 i use their global research to get an edge. tdd#: 1-800-345-2550 their equity ratings show me how schwab tdd#: 1-800-345-2550 rates specific foreign stocks tdd#: 1-800-345-2550 based on things like fundamentals, momentum and risk.

tdd#: 1-800-345-2550 and i also have access to independent tdd#: 1-800-345-2550 firms like ned davis research tdd#: 1-800-345-2550 and economist intelligence unit. tdd#: 1-800-345-2550 plus, i can talk to their global specialists 24/7. tdd#: 1-800-345-2550 and trade in my global account commission-free tdd#: 1-800-345-2550 through march 2013. tdd#: 1-800-345-2550 best part... no jet lag. tdd#: 1-800-345-2550 call 1-800-790-3801 tdd#: 1-800-345-2550 and a global specialist tdd#: 1-800-345-2550 will help you get started today. the market taking a big gallup. i'm not talking about a lornarg soft drink. down 268 points